Sparse Production Networks

Andrew Bernard and Yuan Zi

No 17667, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Firm-to-firm connections in domestic and international production networks play a fundamental role in economic outcomes. Firm heterogeneity and the sparse nature of firm-to-firm connections implicitly discipline network structure. We find that a large group of well-established statistical relationships are not useful in improving our understanding of production networks. We propose an "elementary" model for production networks based on random matching and firm heterogeneity and characterize the families of statistics and data generating processes that may raise underidentification concerns in more complex models. The elementary model is a useful benchmark in developing "instructive" statistics and informing model construction and selection.

Keywords: Model selection; Firm-to-firm networks; Balls-and-bins; Buyer-seller matching; Underidentification (search for similar items in EconPapers)
JEL-codes: F11 F14 (search for similar items in EconPapers)
Date: 2022-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP17667 (application/pdf)

Related works:
Working Paper: Sparse production networks (2022)
Working Paper: Sparse Production Networks (2022)
Working Paper: Sparse production networks (2022)
Working Paper: Sparse Production Networks (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:17667

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17667

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().